Fastenal net sales up 1.8%
Fastenal reported its net sales increased $33.1, or 1.8%, in the second quarter of 2024 when compared to the second quarter of 2023.
Both periods had the same number of selling days. Changes in foreign exchange rates negatively affected sales in the second quarter of 2024 and 2023 by approximately 20 and 40 basis points, respectively.
The company said it experienced higher unit sales in the second quarter primarily due to growth with larger customers and onsite locations opened in the last two years. The impact of product pricing on net sales was a decline of 30 to 60 basis points, in contrast to the second quarter of 2023, which experienced an increase of 190 to 220 basis points. The decline reflects lower fastener pricing, which is a by-product of lower transportation costs, as well as lower pricing in certain safety and other products categories.
From a product standpoint, Fastenal continued to experience a divergence in the performance of its fastener versus non-fastener product lines, which the company believes relates to three factors. First, fasteners are more heavily oriented toward production of final goods than maintenance, which results in greater susceptibility to periods of weaker industrial production. Second, pricing for fasteners has decelerated at a faster pace than non-fastener products. Third, the company continued to experience relatively faster growth with warehousing customers due to market share gains, product mix, and easier comparisons. This factor primarily benefited its safety product line.
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